Commercial Litigation & Business Disputes

Contract Disputes

A contract dispute may arise where one party fails to perform its obligations, supplies defective goods or services, delays performance or refuses to make payment.

Blackstar Law can assist with disputes involving:

• failure to supply goods or services;
• defective or substandard work;
• non-payment of invoices;
• late or incomplete performance;
• termination of contracts;
• disputed contractual terms;
• breach of warranties;
• exclusion and limitation of liability clauses;
• misrepresentation;
• agency and distribution arrangements;
• service agreements; and
• claims for damages arising from breach of contract.

The first stage will usually involve reviewing the contract and relevant communications to establish the parties’ rights and obligations. Where there is no signed written agreement, contractual terms may still be established through emails, purchase orders, invoices, conduct or oral discussions.

Shareholder Disputes

A shareholder dispute can threaten the stability and future of a company. These disputes are often particularly difficult because the parties may also be directors, colleagues, founders or family members.

Blackstar Law advises on matters including:

• exclusion from management;
• disputes over company strategy or control;
• failure to provide financial information;
• suspected misuse of company money or assets;
• excessive director remuneration;
• diversion of business opportunities;
• breach of directors’ duties;
• disputes concerning dividends;
• dilution of shareholdings;
• deadlock between shareholders;
• valuation and sale of shares;
• breach of a shareholders’ agreement; and
• unfair prejudice to a shareholder’s interests.

Possible outcomes may include changes to the management of the company, the purchase or sale of a shareholding, enforcement of contractual rights or court proceedings.

An unfair prejudice petition may be available where a company’s affairs have been conducted in a manner that is unfairly prejudicial to the interests of one or more shareholders. Strict procedural and evidential requirements apply, so advice should be obtained promptly.

Business Debt Recovery

Late and unpaid invoices can have a serious effect on cash flow. Blackstar Law assists businesses with the recovery of commercial debts, including:

• unpaid invoices;
• disputed invoices;
• contractual interest;
• statutory interest and compensation;
• debts arising from the supply of goods or services;
• enforcement of settlement agreements;
• letters before action;
• court claims; and
• enforcement of judgments.

In qualifying business-to-business cases, a creditor may be entitled to statutory interest, fixed compensation and certain recovery costs under late-payment legislation.

Debt recovery action must comply with the relevant court rules and pre-action requirements. Where a debtor disputes the amount owed, the matter may need to proceed as a defended commercial claim rather than as straightforward debt recovery.

Resolving Disputes Without Court Proceedings

Court proceedings are not always the best first option. Many disputes can be resolved through:

• direct negotiation;
• a formal letter before action;
• without-prejudice settlement discussions;
• mediation;
• expert determination; or
• another dispute resolution procedure required by the contract.

A practical settlement may reduce costs, limit management time and preserve a valuable commercial relationship. Where proceedings are necessary, Blackstar Law can provide strategic advice and representation throughout the litigation process.

Act Quickly to Protect Your Position

Legal claims are subject to limitation periods. These determine the deadline by which court proceedings must be started. Delay may also result in lost documents, fading recollections or a deterioration in the other party’s financial position.

If your business is involved in a commercial dispute, early advice can help preserve evidence, protect contractual rights and improve the prospects of an effective resolution.